Is the correction not over yet? JP Morgan Expects Bitcoin Fair Price to be $38,000

After plunging 17% in January, bitcoin rallied sharply in February, but JPMorgan analysts believe the fair price of bitcoin should be $38,000.

In a report Tuesday, JPMorgan strategist Nikolaos Panigirtzoglou said that because bitcoin is about four times more volatile than gold, the bitcoin fair price should fall about 12%, or $38,000, from the current price, which was around $43,000 at the time of writing the report.

If bitcoin's volatility narrows to three times that of gold, then the bitcoin fair price could rise to $50,000, the strategists said.

They believe the biggest challenge facing bitcoin going forward is its volatility, which has prevented some institutions from holding bitcoin.

However, JPMorgan remains bullish on bitcoin in the long term. In its report, the bank expects a long-term price target of $150,000 for bitcoin, up from its January 2021 estimate of $146,000.

As of writing, bitcoin has risen to $44,300, inching closer to the $45,000 mark.